Calum Findlay, Gleadell’s fertiliser manager, comments on the fertiliser markets

Urea

This week’s recent global trades in Egypt concluded at $20/t above previous transactions for significant tonnages. Many manufacturers are now sold out for January and in some cases February too.

Gas problems in Egypt still persist, causing heavy cutbacks, leaving just one plant online during one of the busiest production periods of the year. Currency is not helping UK import prices either, with the pound dropping yesterday to below 1.51 dollars. Demand is also outstripping supply as many European countries continue to cover shorts in this season’s larger-than-average market.

Gleadell continues its busy shipping programme and can still offer granular urea for delivery January-March.

Ammonium nitrate

Ammonium nitrate prices continue their monthly increments across Europe. OCI increased its CAN prices in France, Benelux and Germany by €9/t on Monday. Yara has followed, raising January values by €5/t in Germany yesterday. In the UK, GrowHow moved onto January terms yesterday, raising prices a further £3/t, with a further £3/t increase for February.

Values for imported material have not yet followed as old November/ December positions undercut UK product by £20/t. This, however, will be short lived as replacement imported material will be arriving for February and landing on farm at the normal £10/t discount to UK product.

Phosphate and potash

Globally both phosphates and potash are firm. However, due to the competition for NPK/PK blends in the UK, levels are trading at below replacement values of the raw materials. Straight prices if ordered individually are more in line with replacement costs. If growers can handle blends they look a much better buy on a cost per unit basis.

Fertiliser delivery warning for spring

It is now becoming apparent that the remaining market tonnage to be delivered to farm exceeds maximum haulage capacity for the UK. Blenders have already sold out of January tonnes and with imported shipments arriving late there will not be enough truck movements to execute all requirements. With this in mind, we suggest any fertiliser requirements are ordered in January to avoid disappointment or late application.